Solana
Solana is a blockchain designed for high-throughput, low-cost transaction processing. Through its proprietary Proof of History (PoH) mechanism, Solana achieves high processing performance.
SOL is used for staking and for maintaining network security, and serves as a foundational infrastructure supporting a wide range of use cases, including decentralized applications and NFT transactions.
About Solana’s Inflation Mechanism
On Solana, inflation occurs through the issuance of new SOL that are minted as rewards for validators. New issuance started at an annual inflation rate of 8%, after which the inflation rate has been decreasing each year, following a schedule that leads to a long-term annual inflation rate of 1.5%.
In addition, Solana adopts a mechanism in which a portion of transaction fees is paid in SOL, with 50% of such fees being burned. Depending on the balance between newly issued SOL and burned SOL, inflationary or deflationary effects may occur.
Notice Regarding Solana Class Action Lawsuits
There have been reports that the Solana Foundation and Solana Labs were referenced as “co-conspirators” in a class action complaint filed in the United States. Please note that the outcome of such litigation may potentially have an impact on the Solana project.
In addition, if changes in social conditions, regulatory environments, or usage trends lead us to determine that continued listing of SOL is difficult from the perspective of protecting user assets, we may consider or implement a temporary suspension or discontinuation of SOL-related services.
Past Blockchain Outage Incidents
On Solana, incidents have been confirmed in which network processing was interrupted for certain periods, potentially resulting in delays to deposits and withdrawals. The main incidents and recovery processes are outlined below.
- September 14, 2021
Transaction processing was halted for approximately 17 hours. The primary cause was network saturation due to a sharp increase in transaction volume. Response: The cause was identified and corrected, new software was distributed, and the network was restored through a coordinated restart by validators.
- 2022 (Multiple incidents)
Performance degradation in January, a processing halt of approximately 4.5 hours on June 1, and a large-scale issue confirmed on September 30.
Response: For each incident, the cause was analyzed, patches were applied, and validators performed network restarts.
- February 25, 2023
An outage caused by “cluster instability,” with impact continuing for approximately two days.
Response: Stability was restored through configuration and software adjustments and restart procedures.
- February 6, 2024
Processing halted for approximately five hours. The cause was an issue with the Just-in-Time (JIT) compilation cache, which resulted in repeated recompilation of older contracts.
Response: Validators upgraded to a patched version (v1.17.20). After confirming that more than 80% of staked SOL was activated, the network was restarted and operations were restored.